Puma ready to challenge sportswear market in India

German sportswear giant Puma is shifting gears. After having consolidated its position in the Lifestyle sportswear market in India it is ready to challenge Adidas, Reebok and Nike in performance segment. Puma is also planning to up its retail presence across the country in a bid to hike market share and dislodge the current incumbents, reports CNBC-TV18’s reporter Farah Bookwala.

With a 30-35 percent market share in Rs 36,000 crore Indian sportswear market, puma has been trailing behind Reebok and Adidas in the performance sports category. However, it has consolidated its presence in the Lifestyle sportswear market, which contributes almost 50 percent of its revenues. However, with the launch of its performance running shoe, which claims to expand and contract as the foot moves, Puma is set to take the battle to challengers Nike and Adidas. Rajiv Mehta, MD, Puma India says believes that with performance and without diluting the lifestyle quotient it is going to increase the share of performance and eat market share from traditional competitors like Nike, Adidas and Reebok." Also read: b:kind for women: Stylish, trendy, affordable fashion  Additionally, puma will drive sales by expanding its retail operations. Puma is looking to add 40 stores to its existing count of 270 stores by 2013-end and is also looking to expand in tier-II and tier-III markets with robust demand in developing markets. Even as Puma scouts for independent dealers and distributors in these markets. By 2013-end, Puma is hoping to foray into another 5-6 cities, taking its presence to 81 cities. It hopes new launches, better distribution and penetration will help it gain market share from the current incumbents. Mehta says, "given another year and a half and if the impact still slows down Reebok and we continue to grow in upwards of 35 percent, then, I think we will definitely be in the top 2 or top contender in the space." Like competitors Adiadas and Nike, Puma depends greatly on the online space to drive sales. Around 15 percent of the company's annual revenues are derived from e-commerce platforms. However, it is wary of getting into the discount game to drive sales as it wants to protect margins. The company hopes its product innovation coupled with its retail & marketing push will help it turn around its fortunes in the performance sports market this year.